Important Notices

DFI Monthly Bulletin - February 2009

Monthly Bulletin

Volume 12, Issue 8 - February 2009

Liquidation of Alliance Bank

On February 6, 2009, the Commissioner of Financial Institutions took possession of Alliance Bank and
ordered that it be liquidated. The Commissioner then appointed the Federal Deposit Insurance
Corporation ("FDIC") as receiver of Alliance Bank, and the FDIC accepted the appointment. On
Monday, February 9, 2009, all branches of Alliance Bank reopened as branches of California Bank &
Trust, San Diego.

Liquidation of County Bank

On Friday, February 6, 2009, the Commissioner of Financial Institutions
took possession of County Bank and ordered that it be liquidated. The
Commissioner then appointed the Federal Deposit Insurance Corporation
("FDIC") as Receiver, and the FDIC accepted the appointment. All deposit
accounts were transferred to Westamerica Bank, San Rafael. On Monday,
February 9, 2009, the former County Bank locations reopened as branches
of Westamerica Bank, San Rafael.

The FDIC Advisory Committee on Economic Inclusion (ComE-IN) met on February 5, 2009 and a Webcast was available nationwide. The agenda focused on strategies for expanding banking services to
the significant number of underserved households. An estimated 10 million households - or almost 10 percent of the U.S. population - do not have bank accounts, while many more are considered
"underbanked" as they continue to rely on non-bank providers for financial services, often at a very high cost.

A number of expert panelist representing banks, community groups and other organizations discussed
specific approaches for reaching the underserved, including providing financial education, developing innovative lending and asset-building products and services, and promoting community recovery
strategies.

April 2009 has been designated California Financial Literacy Month (CAFLM)
to highlight the importance of financial literacy and encourage all Californians
to increase their understanding of saving, investing and credit choices.
Please see our website for more details: http://www.dfi.ca.gov/CAFLM/default.asp.

FDIC Releases First National Survey of Banks' Efforts to Serve the Unbanked and Underbanked

The survey found that improvement may be possible in the areas of focus, outreach and commitment. The majority of banks - 63 percent - offer basic financial education materials, but fewer participate in
the types of outreach efforts that are viewed by the industry as most effective to attract and maintain unbanked and underbanked individuals as long-term customers. The bank survey, which was voluntary,
was administered in 2008 to a nationally representative random sample of about 1,300 FDIC-insured banks and thrifts; 685 completed surveys were returned, representing a 54 percent response rate. Case
studies were also developed for 16 banks that are employing innovative ways of serving unbanked and/or underbanked individuals.

Among other key findings of the study are:

While most banks offer basic checking accounts to all customers, few offer deposit, payment, credit and electronically based products that address the unique needs of unbanked and underbanked customers.

Banks are concerned about the profitability of doing business with unbanked and underbanked individuals as well as perceived regulatory issues related to anti-money laundering laws and regulations.

Among the findings regarding banks' efforts to improve access through
retail branch operations and strategies are:

Over half of banks offer limited extended hours and foreign language capabilities at their retail branches.

Almost two-thirds (64 percent) of banks report that they have modified their retail operations in the last five years to make the bank more appealing or convenient for unbanked and/or underbanked customers.

The Department of Financial Institutions has partnered with its sister agency, the California Department of Corporations, and the California Council on Economic Education to produce "8 Tips for Financial Success". This handy, two-page guide contains eight commonsensical suggestions that any household can use to make their hard-earned dollars go farther. We encourage our licensees and others to download and print this guide for distribution to customers, community groups, schools and anyone interested in learning how to earn, spend, save and invest more wisely.